KUALA LUMPUR – The government lost a staggering RM500 million in potential income following the sale of 20 plots of Kuala Lumpur City Hall (DBKL) land in the early 2010s at under market price.
The plots were among 97 land deals in the city completed between 2011 and 2018 under the Barisan Nasional administration, according to the Hansard of one of the Public Accounts Committee’s (PAC) proceedings on the matter.
The Hansard of its April 4, 2019 hearing was released earlier this week, along with PAC’s findings.
During the proceedings, Pakatan Harapan’s Federal Territories minister, Khalid Abdul Samad, had said the special committee formed in July 2018 to review and renegotiate the land deals found that a change of ownership had been concluded for 20 plots.
“We were not able to do anything as developments had also started there.”
Khalid was appointed minister after BN lost the 2018 general election to PH.
He had also said the 20 plots were sold at RM500 million lower than the market value at the time, based on valuations conducted by the Valuation and Property Services Department.
“The plots with an acreage of 158.05 acres (63.9ha) were valued at RM1.73 billion, but the transaction value was only RM1.23 billion.”
Khalid, who is also Amanah communications director, had said his ministry lodged a report with the Malaysian Anti-Corruption Commission on the matter.
He had said 43 of the 97 land deals were given the go-ahead as they were sold slightly above value, while 14 deals were cancelled and their 10% deposits returned as they were RM100 million below valuation.
The remaining 20 deals were renegotiated for a better price.
None of the 97 deals went through open tender.
Federal Territories Ministry Socioeconomic Division secretary Datuk Muhammad Azmi Mohd Zain, meanwhile, told the PAC proceedings that 90 of the 97 land deals were concluded via direct negotiations, while the rest went through limited tender.
All the deals were authorised by the respective Federal Territories ministers at the time, he had said.
BN’s Datuk Seri Tengku Adnan Tengku Mansor was Federal Territories minister from May 2013 to May 2018, while Datuk Seri Raja Nong Chik Raja Zainal Abidin was his predecessor.
Asked by the PAC panel if the Federal Territories minister had such powers, Azmi had answered in the affirmative.
He had said this was provided for under Article 101(r)(i) of the Local Government Act 1976, which states that no sale or other alienation of immovable property shall take place without the consent of the state authority.
“In this context, the state authority is the Federal Territories minister.”
On Tuesday, PAC released its report on the 97 DBKL land deals, concluding that all were hammered out without clear standard operating procedures.
PAC chairman Wong Kah Woh said detailed SOPs on land transactions were formulated only in 2015. – The Vibes, November 21, 2020
